Institutional investors are increasingly optimistic about the markets and the economy, the Bank of America Merrill Lynch found in its October survey of fund managers. In fact, their risk appetite is at the highest point in three years.

Only 35% think that a global recession is possible in the next 12 months, down from 53% in September. Seventy-two percent believe the outlook for corporate profits will improve in the next year, up from 68% a month earlier.

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